In re Eckelman

189 A.D.2d 263

This text of 189 A.D.2d 263 (In re Eckelman) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Eckelman, 189 A.D.2d 263 (N.Y. Ct. App. 1993).

Opinion

[264]*264OPINION OF THE COURT

Per Curiam.

In this proceeding, the respondent was charged with 13 allegations of professional misconduct. The Special Referee sustained Charges One, Three, Four, Five, Six, Eight, Nine, Ten, Eleven, Twelve and Thirteen and that portion of Charge Two as pertains to the respondent’s failure to maintain a duly constituted escrow account. The petitioner moves to confirm the Special Referee’s report with respect to Charges One through Six and Eight through Thirteen and to disaffirm with respect to the Special Referee’s failure to sustain Charge Seven. The respondent submitted an affidavit in opposition in which he notes that he does not seek to avoid punishment but, rather, to receive an appropriate penalty of limited duration.

Charge One alleged that the respondent converted funds entrusted to him to be held in escrow. On or about September 6, 1985, the respondent deposited or caused to be deposited into his escrow account at Dutchess Bank (account No. 409-0023905) the sum of $3,000. The funds were received in the course of a closing at which the respondent represented Denise Márchese. No funds were released to Ms. Márchese until April 1990. Between the time of the deposit and the time those funds were released, the balance in the respondent’s escrow account consistently fell below the $3,000 he was required to be holding on behalf of Ms. Márchese. On many occasions, that account was overdrawn.

Charge Two alleged that the respondent failed to maintain a duly constituted escrow account with respect to the facts alleged in Charge One. In April 1990, the respondent issued a $3,000 check to Ms. Marchese’s new attorney, Steven Nosanowitz. That check was not issued from the respondent’s escrow account into which the client’s money had been deposited but, rather, from the respondent’s business "income” account.

Charge Three alleged that the respondent failed to maintain a duly constituted escrow account. From approximately August 1985 until at least July 1990, the respondent maintained an escrow account at Dutchess Bank and its successor, The Bank of New York (account No. 409-0023905). The respondent’s escrow account was debited on or about April 23, 1987, in the sum of $2,697.42 in order to pay out a restraining [265]*265notice against respondent personally. The respondent received notice of the debit from the Bank in the form of a debit memo dated April 23, 1987, which accompanied the monthly statement from the bank. The respondent nevertheless failed to rectify the error made in garnishing the escrow account as opposed to a personal account.

Charge Four alleged that the respondent converted funds entrusted to him to be held in escrow, breached his fiduciary duty and engaged in conduct adversely reflecting on his fitness to practice law. On or about July 16, 1986, the respondent issued a check from his escrow account in the amount of $400, payable to Leonard Klein, Esq., regarding CNA v Carpenick. The check cleared on July 28, 1986. The funds corresponding to the Carpenick matter were not deposited into the respondent’s escrow account until August 4, 1986.

Charge Five alleged that the respondent converted funds entrusted to him to be held in escrow, breached his fiduciary duty and engaged in conduct adversely reflecting on his fitness to practice law. On or about October 13, 1988, the respondent deposited, or caused to be deposited, into his escrow account, the sum of $4,390 in connection with a real estate matter for Patricia Lambert. On or about October 12, 1988, the respondent issued check No. 1146, payable to Patricia Lambert, in the amount of $5,000. The check cleared the account on October 14, 1988, resulting in an overdraft to that account. Additional funds related to the Lambert matter were not deposited into the escrow account until October 20, 1988, when the respondent deposited $1,065 on behalf of Ms. Lambert, together with $5,530 as a retainer for another client, for a total deposit of $6,595.

Charge Six alleged that the respondent failed to maintain a duly constituted escrow account and commingled client funds with personal funds. During the time interval involved in the aforesaid charges, the respondent earned legal fees which he did not properly withdraw from his escrow account. The respondent thus permitted earned fees to remain in his escrow account along with his clients’ funds.

Charge Seven alleged that the respondent failed to maintain a duly constituted escrow account and issued a check from that account for personal purposes. On or about October 17, 1988, the respondent issued a $500 check from his escrow account, payable to his brother, Joseph Eckelman, to cover a personal obligation.

[266]*266Charge Eight alleged that the respondent failed to properly designate a separate account for client funds. Although the individual checks for the subject account bore the designation "escrow account,” the bank statements bore the sole title "Paul J. Eckelman, Esq.,” and failed to bear a designation sufficient to distinguish them from all other bank accounts maintained by the respondent as required since December 9, 1987.

Charge Nine alleged that the respondent failed to maintain and produce required books and records for his client escrow account pursuant to Code of Professional Responsibility DR 9-102 (D) and (I) (formerly 22 NYCRR 691.12 [c], [k]). A subpoena duces tecum, dated January 5, 1991, required the respondent to produce all bank records for the subject escrow account, as well as any other escrow accounts he might maintain, for the period April 1985 until May 1990, including but not limited to all bank statements, cancelled checks, deposit slips and check stubs. The respondent failed to maintain and produce all deposit slips and cancelled checks requested, as well as any check stubs for his escrow account.

Charge Ten alleged that the respondent neglected a legal matter entrusted to him. The respondent was retained by Dr. Mark Mason in or about late 1986 to represent him with respect to the collection of a judgment he had obtained against one Jack Leif. Although the respondent commenced efforts towards the collection of the judgment, he failed to take sufficient steps to resolve the matter and/or collect the judgment.

Charge Eleven alleged that the respondent failed to adequately communicate with a client. Between the time the respondent was retained by Dr. Mason in 1986 and the time Dr. Mason filed a complaint with the petitioner in July 1990, the respondent failed to return numerous telephone calls and to respond to letters from his client. During that same time period, the respondent failed to keep Dr. Mason informed of the status of the matter.

Charge Twelve alleged that the respondent failed to maintain proper registration as an attorney, in violation of Judiciary Law § 468-a and 22 NYCRR 118.1. As of May 1990, the respondent failed to register as an attorney for the biennial registration periods covering 1988-1989 and 1990-1991. The petitioner issued a sua sponte complaint concerning the status of the respondent’s registration. When the respondent failed [267]*267to respond, a second letter dated June 8, 1990 was sent to him. On or about June 18, 1990, the respondent filed two registration statements for the periods 1988-1989 and 1990-1991. The statements were accompanied by an affidavit notarized in June 1990, as well as two checks, dated June 18, 1990, which were payable to the Office of Court Administration in the amount of $100 each.

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Related

§ 468
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Bluebook (online)
189 A.D.2d 263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-eckelman-nyappdiv-1993.